Investment Tax Credit (Vermont)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Vermont

Name Investment Tax Credit
Incentive Type Personal Tax Credit
Applicable Sector Commercial, Industrial, Agricultural
Eligible Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Fuel Cells using Renewable Fuels, Microturbines
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 7.2% for solar, fuel cells and small wind placed in service on or before 12/31/2016.

2.4% for solar (except hybrid solar lighting) placed in service on or after 12/31/2016. 2.4% for geothermal 2.4% for microturbines and CHP placed in service on or before 12/31/2016.


Carryover Provisions Credit may be carried over for 5 years


Eligible System Size Small wind: up to 100 kW

Fuel cells: 0.5 kW or greater
Microturbines: 2 MW or less
CHP: 50 MW or less
Marine and Hydrokinetic: 150 kW or greater


Equipment Requirements All equipment must meet the same requirements as the Federal Investment Tax Credit
Start Date 2009-01-01
Expiration Date Varies by technology






Maximum Incentive No maximum specified.










Program Administrator Vermont Department of Taxes
Website http://www.state.vt.us/tax/creditsinvestment.shtml
Date added to DSIRE 2008-03-27
Last DSIRE Review 2014-10-31



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Vermont offers an investment tax credit for installations of renewable energy equipment on business properties. The credit is equal to 24% of the "Vermont-property portion" of the federal business energy tax credit. For solar, small wind, and fuel cells this constitutes a 7.2% state-level credit for systems placed in service on or before 12/31/2016. After this date, solar (except hybrid solar lighting) technologies are eligible for a 2.4% credit. For microturbines, and combined heat and power systems, the credit is a 2.4% state-level tax credit for systems place in service on or before 12/31/2016. The geothermal tax credit is 2.4% indefinitely.* Any unused tax credit may be carried forward for 5 years.


History

Vermont created this credit starting for Tax Year 2002 and provided an additional incentive for solar investments for Tax Year 2008 (via S.B. 209). The solar specific tax credit was amended several times (by the Vermont Energy Act of 2009 (H. 313, May 2009), by HB 781 in June 2010 and again by HB 56 in May 2011). The solar credit was equal to 100% of the "Vermont-property portion" of the federal business energy tax credit for solar from 2008 through 2010. In effect, this constituted a 30% state-level credit for solar during those years. The Vermont Department of Taxes issued Technical Bulletin 45 relating to the solar tax credit (July 2009 updated July 2010) provides additional guidance. As of 2012, the solar business tax credit has expired and the investment tax credit remains.


*The federal investment tax credit (ITC) for solar, small wind, and fuel cells is 30% of expenditures and for geothermal systems, microturbines, and combined heat and power the ITC is 10% of expenditures.Vermont's investment tax credit is equal to 24% of the federal ITC for these technologies.


Incentive Contact

Contact Name Information VT DOT
Department Vermont Department of Taxes
Division Corporate Income Tax
Address 133 State St.

Place Montpelier, Vermont
Zip/Postal Code 05633
Phone (802) 828-5861



Website http://www.state.vt.us/tax
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: 32 V.S.A. § 5822
Date Effective 2008-07-01
Date Enacted 3/19/2008 (subsequently amended)
Expiration Date 2016-12-31


















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"